The Ministry of Industry, Entrepreneurship, Trade and Innovation and the World Bank Group (IFC) signed a cooperation agreement to develop eco-industrial parks in Kosovo. The Prime Minister of the Republic of Kosovo, Albin Kurti, also attended the signing ceremony.
According to Kurti, the project is fully aligned with the Government’s strategic direction, as a circular and competitive economy forms the first pillar of its governing program. He linked the initiative to the path Kosovo’s industry and economy will take in the coming years.
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Discussing economic performance in recent years, the prime minister said gross domestic product had increased by an average of approximately €1 billion a year, whereas previously it had taken 3 years to achieve an increase of that size. He added that over the past 5 years, more than 85,000 new jobs had been created, service exports had nearly tripled, and foreign direct investment had exceeded €1 billion for the first time.
However, Kurti described the trade deficit as one of the economy’s main problems, despite increased economic activity and exports. In this context, he spoke about efforts to replace imports with domestic production and the contribution industrial parks are expected to make.
The prime minister also announced that these parks would be developed in every region of Kosovo, including two in the north. According to him, following the establishment of law and order north of the Ibar River, attention is gradually shifting to the economy, employment and improving living standards for residents there.
In his full address, Kurti acknowledged the Minister of Industry, Entrepreneurship, Trade and Innovation, Mimoza Kusari Lila, the Minister of Environment and Spatial Planning, Fitore Pacolli Dalipi, and the Mayor of South Mitrovica, Faton Peci.
He also greeted Carole Megevand, World Bank Country Manager for Kosovo, Hubert Perr, Head of Cooperation at the European Union Office in Kosovo, as well as deputy ministers and government colleagues Mr. Bunjaku, Mr. Mehmeti and Mr. Maksuti. He also extended his greetings to members of parliament, heads of business associations and organizations, representatives of entrepreneurs, institutional leaders and representatives, and all the ladies and gentlemen present.
The prime minister went on to explain that placing a circular and competitive economy at the heart of the first pillar of the governing program makes the launch of the eco-industrial parks project a natural part of the Government’s strategic direction. According to him, the project is directly linked to the Republic of Kosovo’s future industrial and economic development.
Kurti highlighted the substantial economic growth recorded in recent years. He said gross domestic product had increased by an average of around €1 billion each year, compared with the 3 years previously needed to achieve the same increase. For the past 5 years, he cited the creation of more than 85,000 new jobs, the near tripling of service exports and foreign direct investment surpassing the €1 billion threshold for the first time.
Despite these indicators, the prime minister acknowledged that the trade deficit remains one of the most significant economic challenges. He cited figures for 2025, when Kosovo’s goods imports reached €7 billion, while exports stood at around €1 billion. According to him, the trade gap remains wide in 2026 as well, even though exports have increased.
The Government’s aim, Kurti said, is for as many as possible of the goods currently purchased abroad to be produced in Kosovo. Industrial parks are therefore seen as a means of supporting this objective: they provide domestic businesses with space and infrastructure to expand production capacity, while offering foreign investors more favorable conditions for relocating part of their production to Kosovo.
He stressed that the importance of these investments extends beyond capital alone. They should also bring new jobs, technology, expertise and opportunities to work with domestic suppliers.
According to the prime minister, the diaspora can play a particular role in attracting investment. He mentioned entrepreneurs originally from Kosovo who have built successful businesses in Germany, Switzerland, France, the United States of America and other countries. These entrepreneurs, he said, can connect Kosovo’s economy with international markets, bringing not only their experience and capital but also business partners and networks for cooperation.
Kurti listed Kosovo’s geographical location, proximity to the European Union market, skilled workforce, talented young people who speak several languages and competitive fiscal policies as advantages for attracting these investments. According to him, these factors provide favorable conditions for production, the expansion of which would make it possible to replace some imports and increase exports of products bearing the “Made in Kosova” label.
In the same vein, he discussed the One Billion Euro Plan for manufacturing and industry, developed through ongoing dialogue with the private sector and domestic producers. Based on businesses’ needs, the plan aims to make it easier to finance investment in new production capacity and the expansion of economic activity.
Combined with the development of eco-industrial parks, the plan is expected, according to Kurti, to improve investment conditions, increase domestic production and enable the creation of new and increasingly better jobs.
The prime minister stressed that, alongside expanding production and creating favorable conditions for investors, how goods are produced also matters. He described eco-industrial parks as an opportunity to modernize industry and make it more efficient, use resources more effectively and reduce negative environmental impacts. According to him, they support efforts to increase renewable energy use and prepare businesses for the growing demands of the European market.
Regarding the project’s geographical reach, Kurti said no region of Kosovo would be left out of the development of industrial parks, with two planned for the north. He added that, following the establishment of law and order north of the Ibar River, the focus is shifting step by step toward economic development, jobs and improving residents’ living standards.
In the closing part of his address, the prime minister praised cooperation with the World Bank Group and the European Union in implementing the project and expressed his gratitude for their support. He also emphasized the need for coordination with municipalities, business associations and all other relevant stakeholders to ensure the parks meet businesses’ needs and offer the most favorable possible conditions for investment and economic development.
Kurti expressed the expectation that, during joint visits to Kosovo’s cities over the next four years, they would find these parks fully operational. He described domestic and foreign businesses producing goods and operating by combining competition with cooperation, using modern processes and technologies powered by wind, water and solar energy, for the benefit of the private sector and citizens’ well-being.
According to the prime minister, the intended results should also be reflected in steadily rising wages, continually improving working conditions and surrounding villages and towns that experience the parks as a source of prosperity. He described this as the clearest evidence of the joint project’s success, before concluding his address with thanks and best wishes to everyone.
